Feb. 14, 2007 - Finland produced 14.1 million tons of paper and paperboard in 2006, which was more than ever before, according to the Finnish Forest Industries Federation (FFIF).

FFIF said that chemical and mechanical pulp production also reached an all-time high of over 13 million tons. Production volumes rose compared with the previous record year, 2004, because companies were able to keep mills running at both Christmas and midsummer for the first time after the change in labor market agreement in 2005.

In 2006 the gross value of production in the Finnish forest industries amounted to approximately 21 billion euros. This was about 14% more than the figure in 2005, which was marred by a labor dispute, and about 6% more than in 2004.

"Finland has good possibilities to maintain its position as a leading production and innovation environment in the forest industries," said Dr. Anne Brunila, president and CEO of the FFIF.

"While unprofitable capacity is being closed in Europe and Finland, efficient and modern mills are doing well. According to preliminary information, the forest industries are investing more in Finland than any other branch and are working to maintain the competitiveness of their domestic capacity," Brunila said

At the same time with the ongoing programs to improve their profitability, the Finnish forest industry companies are initiating measures to build new competitive advantages.

"Our intention is to establish the so called Forest Cluster Ltd. in the near future and to start the cluster's research and development programs. The national strategy of the EU's Forest-Based Industries Technology Platform provides a good basis for preparing research programs and putting them into practice. When the new unit goes into operation, we can join forces in a new way to spur innovation in processing a renewable resource," Brunila added.

Sawn wood production unchanged
In 2006 sawn wood production in Finland totalled 12.1 million cubic meters which was about the same as the year before. Demand for products is good, but production is limited by the availability and price of domestic wood.